In Florida ALL residential condominium associations are required by law to have a replacement valuation conducted at least every 36 months. This is the fiduciary responsibility of the Association’s Board in order to protect the financial interests of the unit owners.
Florida Statute 718.111(11)a:
“Adequate property insurance, regardless of any requirement in the declaration of condominium for coverage by the association for full insurable value, replacement cost, or similar coverage, must be based on the replacement cost of the property to be insured as determined by an independent insurance appraisal or update of a prior appraisal. The replacement cost must be determined at least once every 36 months.”
What happens if an Association does not comply?
“Failure to comply with the Florida Statutes and the Florida Administrative Code (FAC) can lead to action by the Department of Business and Professional Regulation (DBPR) including fines of up to $5,000 per violation.”